A handy financial resource

If you'd like to "know your stuff" before heading into a mortgage broker or financial planner's office, you may want to check out the Financial Consumer Agency of Canada's consumer’s publications. I have provided a copy of the web address for you below or you can email me and I will send you the link. 

The government body has done a great job of outlining basic financial topics from how to borrow on home equity to how to develop a household budget. It also offers a six-part section on credit cards - that addresses how to save with credit cards as well as how to shop around for a credit card. It also runs down the various mortgage products on the market place and tackles saving and investing topics. 

While meeting a mortgage broker in person is probably the best way to find the financial products that best suit your particular needs, it never hurts to head into a meeting with a basic understanding of your options. The FCAC's publications will provide you with the background you need to navigate the discussion in the direction you'd like it to go.  We’d all like write our own rules on how lender’s finance but understanding them is the next best thing. 
http://www.fcac-acfc.gc.ca/eng/publications/ConsumerPubs-eng.asp?tabToShow=Savings#Savings

Thank you #SoConnected - One Person Can Make a Difference

Friday night I went to a party.  A "twitter" party to be exact.  Okay, so I really went out to dinner with a girlfriend who was in town  but I was also at the "twitter" party via my blackberry.  At first I was periodically checking in to see what was going on but soon I was addicted and so was my friend.

You see way back when there was an event organized on twitter and from that this very sweet person named @Clippo had an idea for an all inclusive party where anyone could join in.  I must say it was much more fun than the event that inspired #SoConnected.  It went fast and at times it was frustrating but what kept it going was the thoughtful organizational skill of the host.  This was her third twitter party and here's what she did.

She created a twitter name, website and facebook page.  She put together prizes, questions, a hashtag and engaged some techie know hows to keep the flow going.  Questions were coming out, witty answers were popping up on the feed, tweets were tweeting and following and everyone was meeting new people.  There were lots of laughs and lots of prizes.  I was so impressed.  I know there are other twitter parties out there so if you have any suggestions let me know. 

Friday night was fun.  This wonderful gal did all this for no other reason than to get people connected.  There was no corporate sponsor, nothing much in it her for her at all.  Thank goodness for people like @Clippo.  What can I ever do to say thank-you?  Here's one thing I can do.  Here's the link to her website so you can learn more about this great lady and her great business. 

http://www.clippo.ca/

Have a great day everyone. 

How Often Do You Do It?

When it comes to your mortgage are you doing it once a month?  Most Canadians make monthly payments on their mortgage but doing it more often can make a big difference and save you lots of money and put a great big smile on your face!

You've heard that splitting your payment, making extra payments, - whatever you want to call it - can make a big difference on your mortgage and it's true.  It's not magic and it's certainly not a gift from a lender.  It's your sacrifice that makes the difference but it's an easy one. It's called a "Bi-weekly accelerated" payment and you need to ask for it by name.  "Bi-monthly" is not the same and "weekly" is a waste of your resources.  Here's how it works:

For this exercise you will need a calendar.

 Circle the day each month your payment comes out on.  Now change your payment to bi-weekly which means you will pay every second Friday.  Now you're making 26 payments and if you divide that by 2 you will see you have actually made 13 monthly payments.  That one extra monthly payment every year will take a typical amortization down 4 - 5 years. A "Bi-Monthly" payment means you are making your payment twice each month let's say on the 15th and 30th.  That's the equivalent of 12 monthly payments.  "Weekly" mortgage payments will give you the same number of payments as a "bi-weekly accelerated" and if your bank charges you for each transaction from your account then it certainly is not as efficient. 

Here's a link to the Canadian Mortgage and Housing Calculator where you can try it out.  In order to use this calculator you will need a bit of information on your existing mortgage.  See my previous blog post.

I think once you work through this exercise you will agree that the more you do it the richer you will be.

Happy Savings!.  

Your Mortgage is Not a George Foreman Grill!!

If you read my blog post yesterday then you will know it's not always a good idea to break your mortgage contract.  But it's not George Foreman Grill either and you should never "set it and forget it". 

I'm a firm believer in the "annual" review or even more often if it peaks your curiosity.  Serious money saving ideas are more about management than commitment.  If you learn to manage things properly then you will save yourself a ton of money.  So get yourself familiar with the workings of your mortgage by at least knowing where to get your hands on the information quickly.  Reread my blog post from yesterday and start saving!

I want you to stop thinking "set it and forget it" when it comes to your mortgage.  If your in a 5 year contract you should look at your mortgage whenever you are wondering if you're getting ripped off.  The thing that really kills me is most of us already do this with our cell phone contracts.  

If you want me to monitor your mortgage for you let me know.  I'll explain what information I need from you and I'll incorporate you into our process we have for our existing clients. If you think this is of value you to you send me an email. 

6 Important Details you Should Know About Your Mortgage.

Do you want a better mortgage than one you already have?  You can only imagine the number of inquiries I get because someone wants a better rate than the one they are currently paying. (Especially when I'm offering Bon Jovi tickets as a thank you) But just hold on there.  Every-time you ask that question you are setting yourself up for some serious money losses.  There are some important details you need to concern yourself with before you break a contract with your current lender. 

!) Balance of Your Mortgage - no ball, parking!  Get the exact amount and learn where you can get your hands on the information anytime you want.  Most mortgage balances are available on line from your lender.

2) Maturity Date - It's important to know when you mature. Okay all kidding aside you must know when your current mortgage term comes up for renewal.  This date makes a lot of difference in determining your penalty and your actual savings. You also need to know how many payments you have remaining.  Are you making monthly or bi-weekly payments?  There is a difference. 

3) Monthly Payment - Again, no ball parking!  Get the exact amount. 

4) Current Mortgage Rate - Don't ball park it!  The exact number is very important in helping you determine how much you will save.  A mistake of .05% can make a huge difference.

5) Remaining Amortization - this is a tough one but so important.  You need to know under your current payment schedule exactly when will you be mortgage free. This number is so important.  Mortgage Lenders don't make money based on your interest rate, they make money based on how long you take to pay off your loan.  If you have less than 10 years left on your mortgage a 1% saving on your rate may not make that much difference.

6) Terms of prepayment.  Get to know what your current lender expects for a penalty if you leave your mortgage before the due date.  I think you should consider this when you first get your mortgage but so few people ever think to ask.  If you got a car pool bragging rate on your mortgage the back end maybe pretty restrictive in terms of paying off early.  We've all seen the articles in the newspaper about the $1,000's some poor person paid their lender in mortgage penalties.

In case you loose interest (no pun intended) continue reading here.   Once you have this information you should learn where you can get your hands on it easily.  Every-time the mortgage rates change and after every payment you make the numbers will change.  A good quality amortization schedule should show you how much it's actually costing you to break your mortgage.  Make sure your mortgage broker works out the numbers for you before you follow through with an application.  There should be no surprises.

You can work the numbers out yourself on this calculator provided by Industry Canada.  I personally love this tool.  So if the numbers don't work out in your favor but you still want to see Bon Jovi then let us keep your mortgage info on file and visit it at renewal and we'll put your name in our draw for tickets.  We will keep drawing names until all the tickets are gone.  Just because it doesn't work out just now for you doesn't mean we don't want to party with you! Whenever the time is right "I'll be there for you" and any other bad Bon Jovi pun you can think of.  Keep smiling. 

P.S. - if the mortgage calculator has you totally confused then let me know and I'll work out the numbers for you. 

Get a Mortgage - See Bon Jovi

Back in the saddle again.  It's a full house in the office today for the first time in three weeks.  So let's get this party started shall we!

This is the time of year when we make and action resolutions.  If you've resolved to get your finances in order and if it involves doing something with your mortgage then we want to help you.  We will look at your financial situation and make the recommendations we feel are best for your situation.  If you agree then we'll go ahead and arrange your mortgage.  We are not a bank we are a broker.  We do not work for a bank we work for you.  This service does not cost you whacks of money but you will know every detail before we do anything for you. 

Here's the best part.  We are hosting our now famous Mortgages for Women party at the Bon Jovi concert on Feb 14th and 15th and we want you to join us.  If we complete your mortgage by Feb 14th you are coming.  If you refer a friend's application  then your name will be put in a draw and we will be drawing for winners on Feb 10th.  Even if we don't do their mortgage we want to thank you.  We think if your friend gets tickets and a great mortgage they should treat you but we're not taking any chances.

If you were with us at Bon Jovi in July of 2010 you know how fun this event is.   Need more details? Email me with your questions mberg@mortgages4women.ca . 

See you soon.  And yes we've already handed out tickets....... but we have lots left.

If you want to apply here's the link or you can call us at 1 888 372 7367.

Some money-saving reading...

Well, it's a new year - which translates into a new opportunity to analyze your finances and seek out some savvy cost-cutting measures. Here are a few interesting articles that will help you cut costs across your household budget:




Reduce your bills

This article in the Globe addresses five simple ways to reduce your household bills - from insurance to mortgage interest. While some of the suggestions are pretty straight forward, it reminds us that one of the best ways to save money is to avoid complacency - shop around for better mortgage, insurance and cell phone deals rather than simply automatically renewing with your existing provider.



Get a deal on your next car

This Yahoo! article discusses the best time of year to buy a car. While it argues that you can get the best deals if you go vehicle shopping on New Year's Eve, hitting the dealerships at the end of the month, or before next year's models are released, will also win you some good bargains.



Collect what's coming to you

This article by REIN is less about saving money and more about collecting the rent that's owed to you. If you're new to the role of landlord, it's worth a read as it offers some tips to ensure your tenants pay up every time.